T-Mobile Considering Elimination of Service Contracts?

File this one under "R" for "rumor," but early termination fees at T-Mobile might soon be a thing of the past. That's because T-Mobile is reportedly getting rid of service contracts altogether, whereby existing subscribers will finish out their current agreement and then be able to upgrade to a new device sans service agreement. New customers will be able to take advantage of T-Mobile's no-contract service perhaps as early as March 24th.

What will this mean for smartphone prices, which are often subsidized when a customer agrees to a two-year service agreement? According to TMoNews, the wireless carrier will introduce a new equipment installment plan tier in the $25-$30 range, in addition to a $99 (or less) down payment.

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"Like all good rumors in the tech world, these details are subject to change but we’re pretty comfortable calling this next bit of info as something you should expect to see later this year," TMoNews says.

T-Mobile, currently the fourth largest wireless carrier in the U.S., is looking to reinvent itself as the "un-carrier" in hopes of becoming a bigger competitor to Verizon, AT&T, and Sprint. The question is, will the no-contract gamble pay off?